Internet cafe business is indeed a very popular business now a day. It is one of the establishments made indispensable in an increasingly interconnected world. Internet cafe was started with the opening of the first cyber cafe, Cafe Syberia, in London (UK) September 1, 1994. It was founded by Eva Pascoe. It started with half a dozen HP computers, connected to the Internet to dial-up modems that were able to transfer data @ 9. 6 kilobytes per second (kbps).
At the first Internet Cafe, Cafe Siberia got tremendous publicity and additional investments into the business from likes of Mick Jagger and Maurice Saatchi. With the success of Cafe Siberia, the Internet Cafe business got into flying start, and there were over 6o similar cafes over the world by the summer of 1995. “CYBERLINK INTERNET CAFE” will be the name of this proposed project plan. “Cyber” means, being related to computer and “Link” meaning, a group of computers connected and sharing information around the world. NATURE OF THE BUSINESS
The nature of the business is capitalism, this business focus on technological strategy dealing with communication using computer medium as instrument in services. The business was internet cafe entitled “Cyber link Computer Cafe”. In putting up this business, its need a higher amount of capital and wider location near establishment, Schools, and along highway for closer reach of customers. The business offers services such as; chatting, printing, LAN/ONLINE gaming, scanning, CD burning, MP4/movie downloading, photocopying and other services.
ENTREPRENEUR’S COMPETENCIES AND QUALIFICATION The entrepreneurs are a 5th and a 4th year student of Bachelor of Science in Computer Engineering @ Ifugao State University Lagawe Campus, Lagawe, Ifugao. They are knowledgeable relatively on how to operate and manage the computers, hardware and software. They had the experienced in teaching basic computer literacy over the provinces of Ifugao and they passed the national certificate II (NCII) under TESDA, that’s make them to be a qualified to pursue this business.
BUSINESS CONTRIBUTIONS TO THE LOCAL AND NATIONAL ECONOMY Help to boost up the industrial economy of the Ifugao province, through taxes being collected in processing the said proposed business. To provide easy technology access to urban and rural areas for communication. SECTION 1 MARKET STUDY 1. THE BUSINESS The proposal study is focus in technological business, the business focus on internet cafe, and the researchers choose this business because of very fast improvement in the technological world.
The researchers of this study decided to put up an Internet cafe to provide information and services to the public by adopting it in the continuing growth of our economy that can further boost up the progress of our province and of course our nation. Business Features: This chosen business is based on technological aspect; internet cafe has a big impact to society and in humans’ life. As of today, through the use of the World Wide Web or internet, faster communications as well as current events and blogs, information about almost any subject are available in depth and up to date.
This is incredibly valuable for every subject that can imagine. Almost every college and government research organization is “on the web”, along with libraries, educational institutions, associations, and many commercial directories and site. This business also involved LAN/online gaming, printing, encoding and networking and other services. This type of business provides users and players to access easily to any purposes in terms of gamming, data manipulation, researching, downloading, updating and communication. This popularity has helped created a strong demand and a sustainable revenue model for the Internet cafe. 2.
LOCATION OF THE BUSINESS The proposed location of the business was located along high-way near schools, offices, clinics, restaurants and also terminals at the place where customers are mainly students, private and government employees and nearby neighborhood that finds convenience in researching and playing games at the establishment. It is 200 meter radius requirements as provided in the existing zoning code and other applicable rules and regulations wherein computer shops and other similar establishments and places of amusements are possible and other government offices. Site is primarily in good terms of services.
The location of the business is located at Baywong Building, Poblacion East, Lagawe, Ifugao, beside petron gasoline station, in front of Lagawe Central School. It’s about 20 square meters in size. It’s been the ideal place of the business establishes for internet cafe because it is accessible to public because it’s along the highway and most schools are near the establishment like; Lagawe Central School, and Don Bosco High School. In accessibility, the location is just along the highway, and people just strolling along the way and passengers of utility vehicle can easily see the Internet Cafe.
In competency and study of market, the location is a commercial place, so the prospective customer’s is almost everybody, and for that, the business management are more capable of attracting customer’s because its offer more affordable computer fees. The Internet cafe will provides small private booths for quiet chatting compared to the standard elbow to elbow computer station. The management will guaranteed that the shop was well ventilated (air condition) to make the customers comfortable, good music will well provided, the PC’s will all be organized and arranged properly in accordance to their rows for the convenience of the customers.
Each computer will have their own games, internet and surfing to be chosen by the customers, what the customers want and needs will be concerns of the management. List of Business Areas and Size of Business Area Size Population Sector Rural 20 sq. meter 9,000 Government and Non-government Sector 3. DEMAND The said location of the establishment of the proposed internet cafe is a commercial building at Baywong’s Building just in front of the public central elementary school. Where in it is surrounded by different establishment and most especially it is along the main highway road that it is easily seen by people passes by. 4.
Target market share / Competitive Analysis In the survey conducted by the researchers, their internet cafe customers will be teachers, students, public people, non-government agencies, government agencies, and other barangay closer to the said establishment. Students and “tambay boys” are one of the effective customers of the internet establishment. Government and non-government agencies are added to the demand of the business. This Proposed internet cafe provides full access to the resources of internet and other online services, printing, composing, scanning, music/videos downloading, surfing, gaming and other services within the business.
The line of site of SMART BRO is in line to the said proposed establishment for the reason that the SMART communication agencies transferring their tower from Kiangan, Ifugao to Lumingay, Poblacion North, Lagawe, Ifugao. There will be no problem in terms of internet connection and of course we come up to the survey that the strength of the signal will be satisfactory. Being a net cafe was not served the purpose as business needs to be more than a value addition process rather than a traditional net cafe, which is why after being operational for first 1 year, there will be equipment added to the cart Web developing.
It was not only the value addition but also a business expansion for more updated tools and more flexible materials to be used. We then learned and realized the fast changes in terms of technologies that’s why we learned also not to stick on present situation but rather we must be updated on what tomorrows could bring. 5. PROJECTED SALES Business fees are as follows: Average revenue DailyMonthlyYearly Hands-on/Games/Internet use P 12. 00/hr. 1,152 34,560 414,720 Printing Jobs a) Scanning P 10. 00/page 70 2,100 25,200 b) Colored P 4. 00/page (Short) 401,200 14,400 P 5.
00/page (Long)351,05012,600 c) Laser/Deskjet text only P 2. 00/page (Short)451,350 16,200 P 3. 00/page (Long)30 90010,800 d) Photo size is 8. 5”x11” P 15. 00/page 75 2,250 27,000 e) Photocopying Cents . 50. 00/page(Short) 50 1,500 18,250 P 1. 00/page (Long)401,20014,400 Encoding P 12. 00/page (Short) 601,800 21,600 P 15. 00/page (Long)702,10025,200 Downloading Movie P 10. 00/movie 501,500 18,250 Downloading Music P 1. 00/song 15 450 5,400 CD burning P 20. 00/25 songs 60 1,800 21,600 Blank DiscP 10. 00 (CDR)501,50018,000 P 20. 00 (DVD)601,80021,000 P 1,902. 00 P 56,060. 00 P 684,620. 00 6.
PROPOSED BUSINESS STRATEGY a) Business Strategy The business strategy were minimized the internet fee to P 12. 00 for the purposed that customers will afford the fees. P20 for every 2 hours, P30 for every 3 hours. Offers affordable price on downloading movies and music for customers satisfactory. Offers low price in printing and encoding services. The management always put up air-condition for the customer conveniences. More spacious area inside the internet cafe. More upgrade tools in every year for more suitable in services. More computer units were been added because of business upgraded.
More upgrade service provider in terms of speed for faster surfing connection (4G) and weekly maintenances. Computer to rent for cheap. Membership- (the customers will be given a card to be stamped every visit and if they got 25 stamped, there every 2 hours is 20% discounted). Contest for gamers (the winner will be free on their rental charge & to be held every Saturday from 3:00 to 5:00 pm only. ) b. Distribution Business Strategy The manager/owner was always humbled in communication to all computer customers, and always acted as professional in assisting customers.
The location of the business were near the central establishment like schools, offices, restaurants, business and other feasible agencies in accessing more customers. The Internet cafe has a comfort room, and provides an area for waiting area for customers when there’s no vacancy space from the computer. The management assisted customers when errors occur on their computer station. c) Promotion Business Strategy Use tarpaulin as a medium of information for the business. Distribution of fliers was concerns of the management. The management will be the one who makes the fliers and discount cards. ITEMS Unit
cost Tarpaulin 1 300. 00 total 300. 00 d) Pricing Services Strategy Hands-on/Games/Internet useP 12. 00/hr. Printing Jobs ScanningP 10. 00/page ColoredP 4. 00/page (Short) P 5. 00/page (Long) Laser/DeskJet text onlyP 2. 00/page (Short) P 3. 00/page (Long) PhotocopyingCents . 50. 00/page (Short) P 1. 00/page (Long) Encoding P 12. 00/page (Short) P 15. 00/page (Long) Downloading MovieP 10. 00/movie Downloading MusicP 1. 00/song CD burningP 20/25 songs (with CD) e) Marketing Budget In hardware, the management will put up 15 units (monitor LED-flat screen (Samsung), keyboard, PS2 mouse, processor, and webcam).
The Internet connection will be a package by the Smart Bro with the amount of 1,200. 00 and 3 in 1 printer (canon), scanner & photocopier. In software, the management will be installing original Operating System of Microsoft Office Professional 2013 likes MS word, Excel, power point, access, desktop publishing and installing the popular LAN games such as World of war craft, Counter Strike, Battle Realms, Dance Audition, Auto Jam, Generals, Dota, Call of Duty, Snipers, Plant and Zombies, Frozen Throne, Special Force, Death Match games. The management will also installing Smadav 2013 version 6.
0 premium anti-virus and anti-spyware for all the computer. The management also offers other services for customers likes printing in black and white, DVD/CD burning, photo copying, music/videos downloading, encoding, online/LAN gaming, scanning and others. SECTION 2 TECHNICAL STUDY 1) Business Process 2) Raw Materials and Supplies Ink 140. 00/cartridge Bond paper120. 00/rim Blank disc10. 00/ blank disc Staple wire55. 00 3) FIXED ASSETS REQUIRED ITEMS UNITSCOST/UNITTOTAL COST Chair20350. 007,000. 00 CPU1511,450. 00171,750. 00 CABINET1 2,900. 002,900. 00 COMPUTER TABLES 4 SETS 2,500. 0010,000. 00 WATER DRUM11,200. 001,200. 00 Aircon18. 480.
008,480. 00 Padlock2450. 000900. 00 Monitor (LED) 154,000. 0060,000. 00 Printer 25,000. 0010,000. 00 Mouse15 50. 00750. 00 Keyboard 15 120. 001,800. 00 Head set 15 550. 008,250. 00 Webcam 15 249. 00 3,735. 00 TOTAL Php 286,765. 00 4) Maintenance and Spare Parts Mouse1550. 00750. 00 Keyboard 15120. 001,800. 00 Heat set 1580. 001,200. 00 Ink replacement8 cartridge120. 00960. 00 Coupon bond2rims (short)120. 00240. 00 (Long and short) 2rims130. 00260. 00 Update antivirus free Staple wire 3boxes55. 00165. 00 Php 5,375. 00 Changing mouse and keyboard when damaged. Anti- virus updated every three (3) days. Cleaning of CPU ventilation every day.
Upgrading software that being installed in every computer. Cleaning files in every 2 months. 5) Business Location and Lay out 6) Business Overhead Expenses Air con is maintenance for Php 1,200. 00 every year. Water expense will be Php 150. 00 minimum bill every month. Cleaning expenses were Php 1,635. 00 for the whole year. Business year starts at March 2013. Prepaid rent is Php 5,000. 00 monthly; payment is on the end of every month. Payable paid before the division of income. Padlock and other cleaning materials considered as expense at the end of the month. All lighting materials are included in lease of contract.
Membership cards, small tarpaulins & fliers are purchase once a year. Waste Disposal The proper disposal of the garbage was very important. Since the business will be concentrated on computer cafe, the management will use coupon bond paper so it will not hard for the management to think how it will be disposed. Tomaintain the cleanliness inside the cafe there are trash basket at one corner. Cleaning Materials Soft Brooms 200. 00 Soap 120. 00 Dust Pan120. 00 Trash Can 160. 00 Feather Dust 50. 00 Mop 250. 00 Air Freshener 550. 00 ___________________ Total Php 1,340. 00 Guidelines of Business
All malicious sites are blocked for high school and elementary student. We’ll not allow inserting flash drive or any storage device without the consent of the shop manager. The flash drive must be first scan in the management before inserting to the USB Port. Eating and drinking inside the premises is not allowed. We’ll not allow students (High School & Elementary Level ) during classes hours. We’ll not allow people to enter the internet cafe who are influence in liquor. SECTION 111 INSTITUTIONAL/OPERATIONAL STUDY 1) Form of Business The form of business is a service render for internet users for the players who come to play computer games.
The business will be managed by two people and repairing will be there responsibility also. The business form is mainly a service provider for the community. 2) Business Name “CYBERLINK INTERNET CAFE” will be the name of the business establishment. “CYBER” being related to computers and “LINK” refers to interconnection of computer around the world. 3) Capability Profile The manager/owner of the business exhibit the functionalities of having strong commitments in value of flexible learning, devote energy to seeking out new opportunities, and capability with respect to technology depends on the current environment. 4) ORGANIZATIONAL CHART
5) Key Personnel and Responsibilities Main Responsibilities of Manager / Owner 1. To manage and lead to arrange of system in line with the business plan on the internet cafe. 2. Develop plan and deliver training for the staff, volunteers and users. 3. Ensure users are welcome, help and provide safe and suitably equipped environment. 4. Maintaining high standards of security within open welcoming services. 5. Provide training and advice on related matters- for staff and users, in a manner appropriate to their age, skill and ability. 6. Ensure all policies and procedures in line with legislation and the organizations ethos.
7. Monitor the appearance of the premises; ensure that it is kept clean, tidy, well organized fully stocked and fully staffed. 8. Contribute to the refinement of overall objective of the business. 9. Collect and interpret relevant statistics and management information. 10. Refine and update the business plan, policies and procedures as necessary. 11. Review and update internet usage guidelines. 12. Research funding opportunities on an on-going basis and prepare bids as necessary. 13. Plan and organized methods of evaluating the project, which will involving staff, users to be fully participatory.
14. Liaise with external partners and statutory bodies as appropriate. 15. Installing, configuring and upgrading operating system and software. 16. Installing, configuring, assembling and repairing computer, network infrastructure and peripherals such as printers, and related hardware. 17. Installs and test computers, diagnoses hardware and systems related problems and issues, and other environments with installed computers. 18. Managers tests, install and connects computers, troubleshoots computer network problems address performance issues and system crashes. 19.
Owners working with a computer manufacturer or a big box computer electronics retailer generally diagnoses, troubleshoots, replaces parts and repair personal computers and workstations. Responsibilities of Internet Assistant 1. Records Malfunctions If a computer in the internet cafe does not function properly, it is the lab assistant’s responsibility to diagnose the problem to the best of his/her ability. He/she must provide a written or verbal report to a superior explaining what problem is occurring and the potential causes of it and suggest action that could fix the problem. 2. Provides Reference Materials
When a user of the computer cafe is having trouble with a certain software system or hardware components, the computer lab assistant can provide guidelines to the user. 3. Maintaining Equipment The internet cafe assistant will be responsible for the maintenance of all equipment in the computer cafe. In addition to caring for and maintaining the computer. Lab assistant is also required to do things like change the toner and ad paper to the printer. 4. Set Up and Shut Down Depending on the time of day a computer lab assistant works, he/she will be responsible for setting up or shutting down the lab.
This includes doing things like turning on or off the lights, computers and printers. 5. Provides Consultation A computer cafe assistant will be responsible for consulting with others who are in the computer lab. In the situation when the computer assistant cannot answer a question. He/she should report to his supervisor for help. 6. Care for the Equipment The internet cafe assistant will be responsible for making sure that those who are using the computer in the lab treat the equipment properly so accidents may not occur. This involved seeing that lab users do not have food or drinks at the computer.
It is also involved making sure users era not downloading questionable files or programs on the computer that could include spywares or other malware. 6) Administrative Cost Legal Requirements Cost Barangay Clearance 150. 00 Mayor’s Permit 1,800. 00 Business Tax 500. 00 Mayor’s Permit 1,800. 00 Business Platefree Occupational Tax200. 00 BIR500. 00 DTI220. 00 BFP 350. 00 Total Php 5,320. 00 7. OPERATION OF THE BUSINESS Internet Cafe will open at 7:00 am until 10:00 pm. Ahead of other competitors, this strategy lead the management of being known. The goal is to give the needs of every customer in an early manner of time.
It also includes the completed of all legal requirements of the said business. In operational procedure, the management keeps legal aspects of establishing business permit & the following requirements in visible area. Legal Requirements Registration with BIR (Bureau of Internal Revenue). Registration of business name with DTI (Department of Trade and Industry). Barangay Clearance and Business Permit Mayors Permit Registration of Name With DTI The business will be register in the DTI that ensured the business legal issued by the said government agency. Business/Mayor’s Permit
Business Permit will be applied the licensing office at the Municipal Hall of the said locality in the management of HON. Mayor Cesario D. Cabbigat. Bureau of Internal Revenue The business will be register with BIR and secured TIN (Tax Identification Number) which was used to simplifying the record control producers relating to taxation and securing VAT (Value Added Tax). *Steps in processing permits STEP 1 Business Name Registration Certificate Validity: 5 years Requirements: Accomplished Business Name Registration Form [Single Proprietorship/Partnership] Tax Identification Number (TIN)
Registration fee of P 300. 00 STEP 2 Mayors / Business Permit Local Municipality where the business is located Validity: 1 year Requirements: Accomplished Business Permit Application Form DTI-Business Name Certificate Sketch of the business location Barangay Clearance Lease Contract STEP 3 Bureau of Internal Revenue (BIR) National Office. STEP 4 Securities and Exchange Commission (SEC) Certificate Requirements: Verification Slip Form (re: proposed name). Accomplished Registration Data Sheet SECTION IV FINANCIAL STUDY Total Capital Requirements 2)Financial Statement
Financial aspect conform the detailed computation of every financial need of the business is to determine and evaluate the project requirements, possible sources, capital financing and also the limitation of the business such as terms and condition. Capital is the most important asset in the business; it must be available at least cost when it is needed and the most important aspect among others. It admits how the business is made possible and determines the profitability of the business. a. Consumption Statement i. The Initial capital is about Php 320,000. 00. ii. The business financial statement is cover up to 3 yrs.
iii. Equipment were be depreciated for 3 years. iv. Other assets were also depreciated for 3 years. v. Software were be amortized for 3 years. vi. Light expenses were increased 3% annually. vii. Supplies were purchased annually. viii. Additional equipment will purchase before the business year operate. There are some objectives and guidelines to be met: a. To make a safe, realistic and complete of operating revenues and costs. b. To determine the liquidity, profitability and soundness of its financial position. c. To determine the accumulated capital financing from partners. d.
To determined and ensure the necessary financial management of business will have monetary resources whenever necessary. e. To make an accurate estimated total cost. B, Income Statement GROSS SALES 2013 SERVICE SERVICE FEE UNITS UNIT CONSUMPTION (DAY) TOTAL/DAY Total per month (30 days) YEAR (365 DAYS) Internet/Games 12/Hr 15 10 720. 00 21,600. 00 259,200. 00 Printing P&B 3/Page Pcs. 150 450. 00 13,500. 00 162,000. 00 printing colored 4/page Pcs. 10 40. 00 1,200. 00 14,400. 00 Picture (small) 8/page Pcs. 11 88. 00 2,640. 00 31,680. 00 Picture (medium) 10/page Pcs. 8 80. 00 2,400. 00 28,800.
00 Picture (Larger) 15/page pcs 5 75. 00 2,250. 00 27,000. 00 Scanning 10/page pcs 7 70. 00 2,100. 00 25,200. 00 CD-burning (CDR) 15/cd pcs 4 60. 00 1,800. 00 21,600. 00 CD-burning (DVD) 20/25 songs pcs 5 100. 00 10,000. 00 120,000. 00 Photo-copying (S) .50/page pcs 100 50. 00 1,500. 00 18,000. 00 Photo-copying (L) 1/page pcs 50 50. 00 1,500. 00 18,000. 00 Music Download 1/song /songs 15 15. 00 450. 00 5,400. 00 Video Download 10/movie /movies 5 50. 00 1,500. 00 18,000. 00 Encoding (short) 12/page Pcs. 5 60. 00 1,800. 00 21,600. 00 Encoding (short) 15/page Pcs. 5 75. 00 2,250. 00 27,000. 00
Total Gross Share Php 1,983. 00 Php 66,490. 00 Php 797,880. 00 GROSS SALES 2014 SERVICE SERVICE FEE UNITS UNIT CONSUMPTION (DAY) TOTAL/DAY Total per month (30 days) YEAR (365 DAYS) Internet/Games 12/Hr 17 15 1,140. 00 43,200. 00 518,400. 00 Printing P&B 3/Page Pcs. 150 450. 00 13,500. 00 162,000. 00 printing colored 4/page Pcs. 10 40. 00 1,200. 00 14,400. 00 Picture (small) 8/page Pcs. 11 88. 00 2,640. 00 31,680. 00 Picture (medium) 10/page Pcs. 8 80. 00 2,400. 00 28,800. 00 Picture (Larger) 15/page pcs 5 75. 00 2,250. 00 27,000. 00 Scanning 10/page pcs 7 70. 00 2,100. 00 25,200. 00 CD-burning (CDR)
15/cd pcs 4 60. 00 1,800. 00 21,600. 00 CD-burning (DVD) 20/25 songs pcs 5 100. 00 10,000. 00 120,000. 00 Photo-copying (S) .50/page pcs 100 50. 00 1500. 00 18,000. 00 Photo-copying (L) 1/page pcs 50 50. 00 1500. 00 18,000. 00 Music Download 1/song /songs 15 15. 00 450. 00 5,400. 00 Video Download 10/movie /movies 5 50. 00 1,500. 00 18,000. 00 Encoding (short) 12/page Pcs. 5 60. 00 1,800. 00 21,600. 00 Encoding (short) 15/page Pcs. 5 75. 00 2,250. 00 27,000. 00 Total Gross Share Php 1,383. 00 Php 88,090. 00 Php 1,057,080. 00 GROSS SALES 2015 SERVICE SERVICE FEE UNITS UNIT CONSUMPTION (DAY)
TOTAL/DAY Total per month (30 days) YEAR (365 DAYS) Internet/Games 10/Hr 20 16 1,280. 00 38,400. 00 460,800. 00 Printing P&B 2/Page Pcs. 150 300. 00 9,000. 00 162,000. 00 printing colored 3/page Pcs. 10 30. 00 900. 00 14,400. 00 Picture (small) 8/page Pcs. 11 88. 00 2,640. 00 31,680. 00 Picture (medium) 10/page Pcs. 8 80. 00 2,400. 00 28,800. 00 Picture (Larger) 15/page pcs 5 75. 00 2,250. 00 27,000. 00 Scanning 10/page pcs 7 70. 00 2,100. 00 25,200. 00 CD-burning (CDR) 15/cd pcs 4 60. 00 1,800. 00 21,600. 00 CD-burning (DVD) 20/25 songs pcs 5 100. 00 10,000. 00 120,000. 00 Photo-copying (S)
.50/page pcs 100 50. 00 1,500. 00 18,000. 00 Photo-copying (L) 1/page pcs 50 50. 00 1,500. 00 18,000. 00 Music Download 1/song /songs 15 15. 00 450. 00 5,400. 00 Video Download 10/movie /movies 5 50. 00 1,500. 00 18,000. 00 Encoding (short) 12/page Pcs. 5 60. 00 1,800. 00 21,600. 00 Encoding (short) 15/page Pcs. 5 75. 00 2,250. 00 27,000. 00 Total Gross Share Php 2,383. 00 Php 78,490. 00 Php 1,048,080. 00 The gross sales will be increasing on the 2nd year because of management marketing strategies but on the 3rd year and coming years will be decreasing because of competence of establishment.
There will be emerging of computer around the municipality and of course the internet fees will be decrease because of the said competition and other services will do also be lessened. The table shows that the computation of the annual supplies expenses. Supplies expenses are the expense incurred during the operation of the business. The total computed expense of specific items was multiplied by the pieces consumed with the price per unit to the unit consumption day. For the other expense such as stapler, fire extinguisher, staple wire, ball pen, and ink, the cost will be based on unit price up on purchase.
1) INCOME STATEMENT Cyber link Internet Cafe Income Statement For the Year Ended Dec 31, 2013-2015 FOR THE YEAR ENDED Dec 31, 2013-2015 20152014 2013 Php 1,048,080. 00Php 1,057,080. 00Php 797,880. 00 LESS: OPERATING EXPENSES: Rent Exp:60,000. 0060,000. 0060,000. 00 Net Provider:11,880. 0011,880. 0011,880. 00 Electricity Exp:72,000. 0072,000. 0072,000. 00 Supplies Exp:89,275. 0065,432. 0041,085. 00 Repair & Maintenance:12,000. 0012,000. 0012,000. 00 Administrative Exp:15,000. 0010,000. 0020,000. 00 Salary Exp:78,000. 0078,000. 0078,000. 00 Depreciation Exp:27,818. 0025,634. 0023,450. 00
Miscellaneous Exp:3,090. 003,090. 003,090. 00 Permit Renewal Exp:5,000. 005,000. 005,000. 00 TOTAL OPERATING EXPENSE:374,063. 00343,036. 00326,505. 00 NET INCOME:674,017. 00714,044. 00471,375. 00 2) BALANCE SHEET Cyber link Internet Cafe Balance sheet For the Year Ended Dec 31, 2013 Current Asset Cash797,880. 00 Total Current Asset797,880. 00 Non- current Asset Electricity exp:72,000. 00 Less: Depreciation Exp: (23,450. 00) Furniture & fixtures:29,080. 00 Less: Dep Exp: (2,908. 00) Office Supplies:480. 00 Total non-current Asset:226,520. 00 Total asset732,070. 00 OWNERS EQUITY Ej & Romel’s capital315,190.
00 Add: net income416,880. 00 Total owners’ equity 732,070. 00 Cyber link Internet Cafe Balance sheet For the Year Ended Dec 31, 2014 Current Asset Cashin the bank320,660. 00 Total Current Asset320,660. 00 Non- current Asset Electricity exp:266,520. 00 Less: Depreciation Exp: (39,978. 00) Furniture & fixtures:29,080. 00 Less: Dep Exp: (4,362. 00) Office Supplies:480. 00 Total non-current Asset:251,740. 00 Total asset572,400. 00 OWNERS EQUITY Net income572,400. 00 Total owners’ equity 572,400. 00 Cyber link Internet Cafe Balance sheet For the Year Ended Dec 31, 2015 Current Asset Cashin the bank506,440.
00 Total Current Asset506,440. 00 Non- current Asset Electricity exp:266,520. 00 Less: Depreciation Exp: (53,304. 00) Furniture & fixtures:29,080. 00 Less: Dep. Exp: (5,816. 00) Office Supplies:480. 00 Total non-current Asset:236,960. 00 Total asset743,400. 00 OWNERS EQUITY & liability Net income743,400. 00 Total owners’ equity 743,400. 00 3. CASH FLOWS STATEMENT Cyber link Internet Cafe Cash flow statement For the Year Ended Dec 31, 2013 a) Cash flow operating Activities Cash received from costumers780,740. 00 Operating expenses Rentals( 60,000. 00) Net provider(11,880. 00) Electricity(72,000. 00)
Supplies(5,706. 00) Repair and maintenance(12,000. 00) Administrative exp(5,320. 00) 613,780. 00 Cash from investing activities Acquisition of equipment(239,868. 00) Acquisition of fixture & furniture(26,172. 00) (266,040. 00) Cash balance347,740. 00 Cyber link Internet Cafe Cash flow statement For the Year Ended Dec 31, 2014 b) Cash flow operating Activities Cash received from costumers887,590. 00 Operating expenses Rentals( 60,000. 00) Net provider(11,880. 00) Electricity(72,000. 00) Supplies(5,706. 00) Repair and maintenance(12,000. 00) Administrative exp(5,320. 00) 720,630. 00 Cash from investing activities
Acquisition of equipment(226,542. 00) Acquisition of fixture & furniture(24,718. 00) 251,260. 00 Cash balance469,370. 00 Cyber link Internet Cafe Cash flow statement For the Year Ended Dec 31, 2015 c) Cash flow operating Activities Cash received from costumers1,058,590. 00 Operating expenses Rentals( 60,000. 00) Net provider(11,880. 00) Electricity(72,000. 00) Supplies(5,706. 00) Repair and maintenance(12,000. 00) Administrative exp(5,320. 00) 891,630. 00 Cash from investing activities Acquisition of equipment(213,216. 00) Acquisition of fixture & furniture(23,264. 00) 236,528. 00 Cash balance655,102.
00 FINANCIAL RATIO 4. Financial analysis Profitability Ratio 1. Return on asset (ROA) 201120122013 Net Income 115,845251,814399,162 Total Asset732,070572,400743,400 = 0. 1582 / 15. 82% = 0. 4399 / 43. 99% =0. 5369 / 53. 69% 2. Return on Equity (ROE) Net income115,845251,814399,162 Owner’s equity732,070572,400743,400 = 0. 1582 / 15. 82% = 0. 4399 / 43. 99% =0. 5369 / 53. 69% 3. Net profit margin NET INCOME115,845251,814399,162 SALES416,880572,400743,400 = 0. 2778 / 27. 78% = 0. 4399 / 43. 99% = 0. 5369 / 53. 69% 4. Current Asset Ratio Current asset732,070572,400743,400 Current liabilities 0 0 0 =0=0= 0
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